[Federal Register Volume 65, Number 6 (Monday, January 10, 2000)]
[Notices]
[Page 1356]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-517]



[[Page 1356]]

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DEPARTMENT OF COMMERCE

Bureau of Export Administration


Action Affecting Export Privileges; Hua Ko Electronics Co. Ltd.; 
Order

    In the Matter of: Hua Ko Electronics Co. Ltd., 9 Dai Shun 
Street, Tai Po Ind. Estate, Tai Po, New Territories, Hong Kong, 
Respondent.

    On November 29, 1989, the then-Under Secretary for Export 
Administration, Dennis E. Koske, entered an Order (hereinafter ``the 
1989 Order'') affirming the Administrative Law Judge's (ALJ) October 
30, 1989 Recommended Decision and Order entered against Hua Ko 
Electronics Co., Ltd. (Hua Ko).\1\ The ALJ found that Hua Ko had 
violated the Export Administration Regulations and recommended that Hua 
Ko's export privileges be denied for a period of 15 years, to run 
concurrently with an Order entered on July 29, 1988,\2\ until the full 
15-year period expired. The denial imposed against Hua Ko will expire, 
by its own terms, on November 28, 2004.
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    \1\ The 1989 Order was entered affirming the ALJ's Recommended 
Decisions and Orders entered against Hua Ko and Ji Wai Sun on 
October 30, 1989. At the time of the 1989 Order was issued, the 
Regulations were found in the 1989 version of the Code of Federal 
Regulations (15 CFR parts 768-799 (1989)).
    \2\ The July 29, 1988 Order was entered by the then-Under 
Secretary for Export Administration, Paul Freedenberg, affirming the 
ALJ's June 30, 1988 Recommended Decision and Order against various 
parties including Hua Ko.
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    On November 4, 1999, BXA and Hua Ko entered into a Settlement 
Agreement to settle allegations that it violated the terms of the 1989 
Order. In reaching that agreement, BXA agreed that certain portions of 
the sanctions agreed to would be suspended. BXA agreed to the 
suspension because of (1) Hua Ko's significant cooperation in a range 
of investigatory matters, including the transactions covered by the 
Settlement Agreement; (2) Significant changes in Hua Ko's senior 
management; (3) Hua Ko's implementation of an export compliance 
program, including its commitment to comply with U.S. and Hong Kong 
export control laws; and (4) The relatively low-level of the 
classification of the U.S.-origin goods obtained by Hua Ko, coupled 
with the types of consumer goods produced by Hua Ko. BXA also agreed to 
move that I suspend the remaining denial period of the 1989 Order, 
which would thereafter be waived, provided that Hua Ko has committed no 
violation of the Act or any regulations, order or license issued 
thereunder. BXA has moved that I so modify the 1989 Order.
    Based on the factors enumerated by BXA, I hereby determine that it 
is appropriate to modify the 1989 Order and therefore grant BXA's 
motion.
    Accordingly, it is therefore ordered,
    First, that, as authorized by Section 766.17(c) of the Regulations, 
I hereby modify the 1989 Order affirming the ALJ's Recommended Decision 
and Order entered against Hua Ko by suspending the remaining period of 
denial imposed pursuant to that Order until November 28, 2004. The 
suspended denial period shall, thereafter be waived, provided that, 
during the period of suspension, Hua Ko has committed no violation of 
the Act or any regulation, order or license issued thereunder. This 
suspension shall take effect on the date that this Order is signed.
    Second, that this Order shall be served on Hua Ko and on BXA, and 
shall be published in the Federal Register.
    This Order, which constitutes the final agency action in this 
matter, is effective immediately.

    Dated: December 21, 1999.
William A. Reinsch,
Under Secretary for Export Administration.
[FR Doc. 00-517 Filed 1-7-00; 8:45 am]
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